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Obama chose Geithner on Nov. 24 – and at the time, the pick was viewed as a forceful move by Obama to assert himself on the economic front. It came after a particularly bad week in the economy, at a time when commentators were starting to raise questions about whether the new president was taking a firm enough stand to reassure the public about the economic meltdown.

Perhaps the biggest factor in Geithner’s favor now is that he’s well-known to senators on both side of the aisle, who consider him a smart and level-headed figure from his work on the Wall Street bailout as president of the New York Fed. It would be a particularly bad time to deny Obama his choice for treasury, when world markets are looking to the new administration to get the U.S. economy on stronger footing.

Still, one potential trouble sign for Geithner is that some senators are speaking out against giving Obama the second half of that $700 billion bailout – which was deeply unpopular among many in the public. If some of that public sentiment spills over onto the Geithner nomination, that could spell trouble. For instance, CNN’s Lou Dobbs already was complaining about the Geithner choice because of his role as an architect of the bailout.

In the end, presidents usually get wide leeway to build the teams they want, and many senators seems satisfied with Obama’s explanation that these tax and immigration issues were honest slip-ups.

The Senate Finance Committee documents, however, suggest committee staff put Geithner through the paces – and questioned some of his answers. Transition aides met with committee staff on Dec. 5 to explain Geithner’s back taxes and the committee did follow-up interviews with three Geithner accountants and a human resources rep at his former employer, the International Monetary Fund. Geithner also met personally with committee staff Dec. 19.

The committee notes that Geithner failed to pay his Social Security taxes while employed at IMF from 2001 to 2003 – even though he was provided documents that explained that he was required to do so.

In addition, Geithner included payments to overnight camps in calculating his dependent child care credit in 2001, 2004 and 2005. His accountant informed him in 2006 the camps were not allowable expenses. The committee notes that Geithner did not file amended returns to fix the mistake.

Despite that, the source familiar with Geithner's vetting made clear the treasury pick still has Obama's blessing.

Also, Obama’s choice to oversee the IRS flubbed his own tax returns – some of which he had personally prepared – to the tune of $42,700 in back taxes and penalties.

And Geithner decided to pay more than half that amount — $26,000 — only after Obama decided to nominate him, according to finance committee documents.

Obama’s team calls them “honest mistakes.” And in the end, Geithner had the only supporter that mattered – Obama himself. One source familiar with Geithner’s vetting says Obama knew about Geithner’s tax problems and decided to push ahead with the nomination anyway because he “still wanted him."

"At the end of the day, Barack decided that he was the best person for a really important job," the source said.

"It wasn't that it wasn't a big deal," the source said. "It was definitely factored in. The question was 'Does this disqualify him?' And the answer was no. It was something that he took care of. Yes, it was a mistake but it was in the past."

Wait a minute...wasn't Obama's key message on taxation that the wealthy weren't paying enough? Here we have a guy who did his own tax returns, and didn't do them well for that matter, and didn't make much of an effort to take care of his mistakes until he was up for a cabinet position?

And it's not a big deal? Oh I'm sorry, I forgot, Mr. Geithner isn't a mean old corporation. How silly of me to think a Washington insider is responsible for the taxes that they owe?

Please.... If this were the average Joe, the IRS would be looking to take houses, cars, anything they could to satisfy the back taxes and interest penalties.

How on earth can Geitner oversee the IRS or help fix our economy when he can't even get his own taxes filed on time? The fact that he waited until after he was nominated to take care of the amount due shows that he was doing one of two things. Trying to avoid paying the taxes by letting the statute of limitations expire, making him a cheat OR he was too dumb to realize what he had to do. The fact that Harry Reid explained Geitner tax evasion as a hiccup and something that happens to everyone is OUTRAGEOUS and explains why RANGEL has yet to be held accountable for his tax evasion. If you and I forgot to pay our taxes I doubt very much that the Government would think of it as a hiccup. If anything they would come down hard and threaten to affect our bank account and our freedom. This is just another example of how WASHINGTON POLITICIANS HAVE GONE AMUCK and continue on a path of corruption. Geitner should NOT be rewarded for TAX EVASION by appointing him in a Cabinet post. What happened to President Elect Obamas promise of better ethics? This Democrat has had ENOUGH of the corruption!

The only problem I had was when the IRS failed to pick up a total on a Schedule D continuation worksheet from which they biiled me on the "cost basis" of a bunch of stock transactions. Other than that, I've been fortunate. That said, let's remember the others like Chavez who have had lesser lapses all of whom have been rejected. It's one thing to be confused with respect to "nanny taxes," and such but the self-employment tax laws are pretty straightforward even to people like me. The fact that he paid his tax liability (when he didn't have to since the statute of limitations had expired) ON THE EVE OF HIS NOMINATION speaks volumes. There's absolutely no question as to his professional qualifications and the fact that he will be confirmed, but how does someone like Mr. Geithner expect the IRS to enforce it's own auditing efforts when he himself, gets a pass?

I don't know. Maybe he was thinking he doesn't have to worry about taxes. Don't the majority of Democrats think this?

He didn't get caught once - he was caught twice!

Let's see - the IRS gets him for his common mistake 2003 and 2004 returns (1st time - it happens) and the Obama camp finds the common mistake 2000 and 2001 (2nd time - According the WSJ - During the vetting of Mr. Geithner late last year, the Obama transition team discovered the nominee had failed to pay the same taxes for 2001 and 2002 (2nd time which actually happened before he got caught the 1st time) . "Upon learning of this error on Nov. 21, 2008, Mr. Geithner immediately submitted payment for tax that would have been due in those years, plus interest," a transition aide said).

WOW! If he was not nominated, would he had to actually pay the taxes back - since the Obama team vetted him last year - pay back the taxes from 2001 and 2002? Mr Geithner only learned this error on Nov. 21st. HMMM!

Good thing he's up for the position of the IRS would be out that cash.

BTW, I don't really care if this guy is confirmed or not. I simply understand the complications.

The IRS did notice. He was audited in 2006, for the years 2003 and 2004. The back taxes discovered were the SAME taxes, but for years 2001 and 2002. it gets a little muddied, because there apparently is the appearance that there was an IRS statute of limitations being used to get out of paying taxes for those years

*snip*

As to why Mr. Geithner didn't pay all his back taxes after the 2006 audit, an Obama aide said the nominee was advised by his accountant he had no further liability. Senate Finance aides said they were concerned either Mr. Geithner or his accountant used the IRS's statute of limitations to avoid further back-tax payments at the time of the audit.

The big question is with his soiled and checkered past why would he want to save him? This continuing tip-toeing through the appointee slime saga is dragging Obie down to mere mortal levels unseen in the electioneering cycle. It's hard to believe that there isn't somebody fresher and cleaner to take on the job...somebody with impeccable pre-screened credentials.

You know, usually the presidential transition time is pretty boring, at least from what I can remember. The old guy winds down and the new guy starts up. But this time, there is new drama every day. It's like the old cracker jacks ads - a suprise in every box!

I've sent the IRS a notice giving them a filing deadline of April 15th, 2009 to provide me with a list of where my tax money has been spent from the first tranche of bailout money. I'm shutting them off if they can't tell me what they are doing with my money. After all, they could be buying drugs with it!